Former Executive Director of Kirkwood Homeowners' Association Pleads in Embezzlement, Tax Fraud
The former executive director of the Kirkwood Homeowners' Association pleaded guilty yesterday to embezzlement, and no contest to grand theft, and two counts each of tax fraud, and tax evasion, according to the Franchise Tax Board.
Deborah Ward, 43, of Tahoe Keys, is scheduled to be formally sentenced on February 9, 2004. Each tax count carries a maximum prison sentence of three years.
Ward embezzled more than $40,000 from the Kirkwood Homeowners' Association between June 1998 and March 2001. According to court documents, Ward also failed to claim this income on her 1999 and 2000 jointly filed state income tax returns. All income is taxable including income from grand theft.
Ward embezzled the funds from the association primarily by giving herself unauthorized bonuses, writing checks for cash, and using the association's checks to pay for personal expenses including clothing, groceries, karaoke machine, palm organizer, computer monitor and printer, cellular phone, pool service, and expenses of her husband's home rental business.
As executive director, Ward had responsibility for taking care of the association's books, checking accounts, and paying expenses. The embezzlement was discovered when the association board requested financial information and failed to get it. When bank statements were finally provided, the theft was discovered.
Alpine County Superior Court Judge Harold Bradford accepted the plea. This was a joint investigation between the Alpine County Sheriff's Department, the Alpine County District Attorney's Office, the Department of Justice, and the FTB.